Day: December 18, 2023

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Greetings and Felicitations

Podfest Expo 2024 Speaker Preview Series – Brad Miller

In this episode of the PodfestExpo 2024 Speaker Preview Podcasts series, I visit with Brad Miller, host of Cancer and Comedy, and discuss their presentation at PodfestExpo on the four elements of your mental health. Some of the issues we tackle in this podcast are:

  • Bringing joy and levity to cancer patients.
  • How Chris Krimitsos brings out the best in everyone.
  • Why you should attend PodfestExpo 2024.

I’m hoping you’ll be able to join me at PodfestExpo 2024, which Podfest Global is hosting. This year’s event will be the 10th anniversary and will be held January 25–28, 2024, at the Wyndham in Orlando, Florida. The line-up of this year’s event is simply first-rate, with some of the top names in podcasting.

Podfest Expo is a community of people interested in and passionate about sharing their voice and message through powerful audio and video mediums. We’re proud to unite as many people as possible to learn, get inspired, and grow better together.

PodfestExpo is so much more than just a mere conference. While we pride ourselves on featuring the most engaging speakers, exciting topics, and in-depth content, the thing that sets the PodfestExpo event apart from all others is the tight-knit community we’ve been building since 2013. You don’t just attend a Podfest event; you become part of the Podfest family.

Whether you’re new to podcasting or a veteran podcaster looking to innovate and improve your podcast, our easy-to-understand conference topics allow you to customize a daily agenda based on what you’re most interested in learning. No matter your skill level or experience, PodfestExpo 2024 has plenty to offer!

I hope you can join me at the event. For information on the event, click here. As an extra benefit to listeners of this podcast, Podfest Expo is offering a discount on the registration price. Enter the discount code “Listener.”

PodfestExpo 2024 is a production of Podfest Global, which sponsors this podcast series.

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31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Data Analytics: Day 12 – The Master Data Plan

As with all other components of a best practices compliance program, robust policies and procedures in data governance need to be in place to effectively address privacy concerns. This is even more true with the shift from breach data protection to data privacy as a regulatory focus. This shift is gaining momentum, especially in the EU under GDPR, where data privacy is a significant concern for companies doing business globally.

It is important to have a Master Data Plan in place with acts to provide a centralized and consistent view of data. A Master Data Plan also enables organizations to have a holistic understanding of their data, leading to better decision-making and improved business efficiency. This Master Data Plan will help drive good data governance, which plays a vital role in compliance program visibility and effective data management. A Master Data Plan involves establishing policies, procedures, and controls to ensure data quality, accuracy, consistency, and trustworthiness. Data quality is essential for data to be fit for purpose and used efficiently in business operations and analytics.

Three key takeaways:

  1. Companies should implement a Master Data Plan in place to effectively manage data going forward.
  2. A Master Data Plan involves establishing policies, procedures, and controls to ensure data quality, accuracy, consistency, and trustworthiness
  3. By embracing data-driven practices and addressing privacy concerns, businesses can enhance compliance programs, drive efficiency, and achieve better ROI.

For more information on KonaAI click here.

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The Ethics Experts

Episode 169 – Danielle Herrick

In this episode of The Ethics Experts, Nick welcomes Danielle Herrick. As the Head of Risk, Compliance, and Ethics at Bloom Energy, a leading provider of clean, reliable, and affordable energy, Danielle oversees the development and implementation of effective and integrated compliance programs across the organization. Danielle has over 20 years of experience in leading compliance risk management programs in various industries, such as insurance, financial services, and consulting.
https://www.linkedin.com/in/danielle-herrick-ccep-903b5825/

Categories
Daily Compliance News

Daily Compliance News: December 18, 2023 – The Grinch Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition:

  • How the Grinch stole company holiday parties. (NYT)
  • How Isaac Asimov informed AI rulemaking. (FT)
  • Gov. misconduct sank Fat Leonard’s trial. (WSJ)
  • A British anti-corruption cop was found dead in suspicious circumstances. (Daily Mail)
Categories
All Things Investigations

All Things Investigations: Episode 43 – Kevin Abikoff and Laura Perkins on The FCPA & Anti-Bribery 2023 Alert

Today’s episode of All Things Investigations is a deep dive into the 2023 FCPA Alert with Tom Fox, Laura Perkins, and Kevin Abikoff from Hughes Hubbard and Reed. They unravel the complexities of the latest updates in anti-corruption laws, focusing on the impact these changes have on companies in the U.S. and abroad. They share a detailed analysis of the current anti-corruption enforcement landscape practical advice for navigating these legal waters, and how we can draw inspiration from a rock and roll great.

Laura Perkins and Kevin Abikoff, from Hughes Hubbard’s Anti-Corruption and Internal Investigations Practice Group, join Tom Fox in this episode. Laura Perkins is the former Assistant Chief for FCPA enforcement at the DOJ, and Kevin Abikoff is a prominent attorney specializing in compliance, anti-corruption law, and internal investigations. Their combined insights provide a unique perspective on the challenges and strategies in compliance and anti-corruption, crucial for businesses operating globally.

 

In this episode, you’ll hear Tom, Laura, and Kevin discuss:

  • Why the FCPA Alerts from Hughes, Hubbard, and Reed always start with a quote from a popular artist – this year’s from Jimmy Buffet: “Go fast enough to get there but slow enough to see.”
  • The guidance that was originally issued in 2021 has evolved as the Department of Justice gains experience with the policies and how they want companies to follow them.
  • Empowering compliance officers who are on the front lines of protecting companies and shareholders, and how doing so is ultimately good for business.
  • What it can mean for companies to self-report to the DOJ and whether or not all of the implications have been considered.
  • For years, the DOJ has been talking about compliance incentives, repercussions, and compensation, and this year, they have taken it a step further by allowing companies to benefit via reductions in fines based on their efforts to bring repercussions to individuals involved in misconduct.
  • Company boards are obliged to exercise business judgment, which includes taking into account financial repercussions or pursuing bad actors. The new guidance may open the floodgates for private plaintiffs to sue boards that do not.
  • Lessons learned from specific enforcement actions from DPA’s, NPA’s, and Declinations, specifically the Ericsson and ABB resolution.
  • The scope of anti-bribery and anti-corruption enforcement outside of the US, looking at France, Brazil, and China.
  • A growing number of countries are entering the sphere of FCPA enforcement actions in the US and elsewhere.

 

Key Quotes:

“In the world of sanctions enforcement, obviously there’s a need for speed. We’ll talk about the M&A release that’s come out and the rapid speed at which the DOJ expects you to do everything. Buffett’s quote for us is a reminder that you have to go fast, but you better be looking at what you’re doing as you go.” – Kevin Abikoff 

“At what point is a company meant to chase a million dollars, or two million dollars by commencing litigation?” – Kevin Abikoff

“The corporate enforcement policy is an evolution from the original FCPA pilot program. As the department gains experience with these policies and they see some change in the way companies operate and the way their investigations are proceeding, they’re able to fine-tune the policies.” – Laura Perkins

“By and large, prosecutors understand the issues that companies face from labor laws in other countries.” – Laura Perkins

Resources:

Hughes Hubbard & Reed website 

Laura Perkins on LinkedIn 

Kevin Abikoff on LinkedIn

Tom Fox

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Categories
Riskology

Riskology by Infortal Episode 15: National Security and Corporate Compliance

Corruption, sanctions, and political instability: these geopolitical events have far-reaching consequences for businesses. In this episode of Riskology, Dr. Ian Oxnevad and Chris Mason, joined by special guest Tom Fox, discuss the recent DOJ guidance on compliance priorities. They offer tips to help businesses identify and mitigate potential vulnerabilities that can affect a company’s bottom line and reputation and safeguard their operations from unforeseen geopolitical challenges.

Infortal Worldwide is a global risk management and investigations firm that specializes in helping businesses navigate complex risk landscapes. The company’s focus extends to various areas, including economics, politics, and geopolitical risk. By delving into these interconnected realms, Infortal Worldwide aims to provide clients with comprehensive insights that empower them to make informed decisions, especially in critical areas such as mergers and acquisitions, private equity investments, and other strategic moves.

 

You’ll hear Chris, Ian, and Tom discuss:

  • American businesses need to understand the implications of their deals in Latin America, East Asia, and other regions, as legal and criminal risks are involved.
  • In its latest announcements, the Department of Justice is emphasizing the importance of corporate compliance and is planning to look at corporate crime through the lens of national security.
  • While it brings an additional level of scrutiny for business, compliance professionals welcome the announcement as it highlights the connection between international corruption and national security.
  • The DOJ’s focus on national security means that corporate compliance groups may receive more resources and funding to enable them to understand the international geopolitical risk landscape and work on solving compliance issues before they happen.
  • Recent scandals in South America highlight why companies with global supply chains, or those that are considering relocating, must be aware of the bribery and corruption risks present in different countries.
  • Argentina has dealt with a number of issues over the past 150 years, and the country’s recent election has created uncertainty about the country’s economic future, so companies should take note and carefully assess the risks associated with doing business there.
  • When the DOJ dedicates more resources to an area, they increase their enforcement in it, so companies need to know who they’re doing business with, how their supply chain functions, and where their products end up in the world.
  • Traditional due diligence methods will not be enough in this new environment, so they’ll need their departments to develop new resiliency skills to mitigate risk and fallout when the geopolitical landscape changes.
  • Managing geopolitical risk can seem daunting, but it’s much simpler than people think. Unlike the government, businesses have the ability to move quickly and course-correct more accurately, and the ability to do that will give companies an advantage over their competition on the world stage.

 

Key Quotes:

“The American private sector doesn’t seem to understand the implications in many cases of the deals that it does, whether it be in Latin America, in East Asia, elsewhere, that it doesn’t have to be a state-backed enterprise, that there are implications.” Dr. Ian Oxnevad

“In many ways, the United States is under permanent non-kinetic attack from Russia, from Middle Eastern countries, and probably China as well, in what we used to call the world’s competition, i.e. business. And because of those non-kinetic attacks… I think that directly affects the national security of the United States.” Tom Fox

“The landscape has changed… Safe jurisdictions and “safe companies,” may not be anymore. The map is different. The geography is different. Business geography is different.” Chris Mason

 

Resources:

Infortal Worldwide

Email

Dr. Ian Oxnevad on LinkedIn

Chris Mason on LinkedIn

Tom Fox

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Categories
Corruption, Crime and Compliance

Matt Stankiewicz on The Groundbreaking Binance Criminal Settlement for $4.3 Billion

What is the cost of ignoring compliance? For the world’s largest cryptocurrency exchange, it’s $4.3 billion dollars. In this episode of Corruption, Crime, and Compliance, Michael Volkov and his guest, Matt Stankiewicz, delve into one of the most significant financial crime prosecutions in the history of the Justice Department: Binance Holdings. Under the direction of its CEO, Changpeng Zhao, Binance blatantly disregarded compliance, had no AML programs, and willfully put growth over regulations. Now, they must pay out a settlement split among various agencies, including the DOJ, OFAC, FinCEN, and CFTC. In addition to the settlement, Binance has destroyed their reputation at a time when customers are demanding companies they can trust.

Matt Stankiewicz is a compliance consultant, and currently a partner at The Volkov Law Group, specializing in anti-bribery, corruption controls, and compliance programs. He previously served as a member of the Ethics and Compliance Monitoring Team, appointed by the DOJ and EPA, and his casework has included global audits of Fortune 100 companies, sanction violations investigations, risk assessment for third-party distributors, and much more.

 

You’ll hear Michael and Matt discuss:

  • Cryptocurrency companies allow customers to exchange government-backed currency for cryptocurrency, such as Bitcoin. Several major crypto companies, including FTX, Celsius, and BlockFi, have faced bankruptcy and legal issues due to non-compliance and shady practices, resulting in customers losing money.
  • Binance, the world’s largest cryptocurrency exchange, recently settled with multiple agencies in the Justice Department for over $4 billion, with penalties split between forfeiture and criminal fines.
  • As part of the agreement, Binance’s main exchange is barred from operating in the US market, which accounts for a third of their revenue, and they also face increased scrutiny by two separate compliance monitors over the next several years.
  • Their circumvention of laws and regulations include violations of the Bank Secrecy Act, failure to register as a money transmitting business, and multiple sanctions transgressions.
  • Binance’s founder and CEO, Changpeng Zhao (CZ), pled guilty to his own set of similar charges, including a failure to maintain an effective AML program, and is facing a multi-million penalty and a potential prison sentence of up to 18 months.
  • Binance was established in China, but regularly moved their headquarters from country to country to avoid regulations. Their lack of compliance was driven from the top, with senior leadership actively prioritizing growth over compliance.
  • Binance created its US-based exchange as “window dressing” to avoid regulations, and the customer service department assisted its customers in circumventing its own compliance controls, like using a VPN to get past IP blocking technology.
  • Though Binance is large enough to continue operating despite the fines, this settlement has sent a strong message to the crypto industry about the importance of reputation, compliance, and customer trust.
  • The cryptocurrency industry is currently lacking a “culture of compliance,” but it has reached an inflection point where lawlessness and shady practices are no longer acceptable. In addition to regulators cracking down on them, customers are also applying pressure for these companies to reform.
  • The use of blockchain technology in the crypto industry provides unique tools for transaction monitoring and tracking funds, which can help ensure compliance with AML regulations and detect suspicious activities.
  • Rogue countries like North Korea are experts in leveraging cryptocurrency in a way that threatens US National Security, so the DOJ must become more adept in investigating and taking action against those that violate US law.
  • Implementing a compliance program in the crypto industry doesn’t have to be expensive or obtrusive, and it can actually be a good business strategy that improves the customer onboarding experience and attracts more clients.

Key Quotes

“Customers want a reputable company.” – Matt Stankiewicz

“Binance prioritized growth over compliance right from the get-go.” – Matt Stankiewicz

“Compliance can sometimes be a really great business strategy if you do it right.” – Matt Stankiewicz

“The DOJ is not expecting a startup to have the same compliance program that a company like Coinbase, or like Apple or Amazon has.” – Matt Stankiewicz

Resources

Matt Stankiewicz on LinkedIn | X (Twitter)

Michael Volkov on LinkedIn | X (Twitter)

The Volkov Law Group

Categories
Adventures in Compliance

The Memoirs of Sherlock Holmes – The Adventure of The Naval Treaty

Welcome to a review of all the Sherlock Holmes stories that are collected in the work “The Memoirs of Sherlock Holmes.” They appeared in Strand Magazine from December 1892 to December 1893. Over the next 12 episodes, I will be reviewing each story and mining them for leadership, compliance, and ethical lessons. In this, we look at the story The Adventure of the Naval Treaty.

The intriguing Sherlock Holmes story “The Adventure of the Naval Treaty,” published in 1893, delves into the captivating themes of espionage, ethics, and geopolitical risk. The narrative, set in the Victorian era, revolves around the theft of a crucial naval treaty, with Holmes being called upon to solve the mystery. Tom interprets this story as a rich source of ethical lessons, emphasizing the importance of trust, responsibility, honesty, and integrity. He also underscores the themes of loyalty, justice, empathy, understanding, secrecy, and personal responsibility that are explored in the narrative. Fox believes that these ethical principles are fundamental to the decision-making processes of compliance professionals. Join Tom Fox on this episode of the Adventures in Compliance podcast as he delves deeper into the ethical lessons embedded in this Sherlock Holmes story.

 Key Highlights:

  • The Story
  • The first spy story?
  • Ethical Lessons
  • Holmes and Ethical Leadership

Resources:

The New Annotated Sherlock Holmes

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FCPA Compliance Report

FCPA Compliance Report – Sam Tate on The UK Economic Crime and Corporate Transparency Act

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom Fox welcomes back Sam Tate, partner at RPC, who discusses the UK’s Economic Crime and Corporate Transparency Act.

Sam Tate is a seasoned partner at RPC, an international law firm specializing in anti-corruption, compliance, and financial crimes. With a rich background in the oil and gas industry, including a stint as the head of anti-corruption at BP, Sam has a unique perspective on the UK’s Economic Crime and Corporate Transparency Act and its role in enhancing corporate transparency and accountability. He believes that the Act is a significant development, particularly in its expansion of liability to senior managers and the introduction of a new failure to prevent fraud. These changes, he argues, necessitate a reevaluation and adaptation of companies’ compliance programs to safeguard against potential offenses. Join Tom Fox and Sam Tate as they delve deeper into this topic on this episode of the FCPA Compliance Report.

 Key Highlights:

  • Enhancing the Corporate Transparency and Accountability Act
  • Adapting to New Fraud Regulations and Compliance
  • The Evolution of Financial Crime Enforcement in the UK
  • Strict Liability for Company Fraud Offenses
  • The Extent and Impact of Fraud

Resources:

Sam Tate on  LinkedIn

RPC

Tom Fox

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Blog

Data-Driven Compliance – From Cutting Edge to Table Stakes

Compliance programs play a crucial role in ensuring that companies adhere to legal and ethical standards. In today’s digital age, where data is abundant and easily accessible, the importance of data-driven compliance programs cannot be overstated. This message was driven home very forcefully in a speech in November by Nicole Argentieri, acting assistant attorney general for the Criminal Division. She stated, “I’d like to now turn to our use of data. In the Criminal Division, we too are going above and beyond in our effort to combat white-collar crime. We are not just waiting for companies to self-report, for witnesses to come forward, or for anomalies to reveal themselves on a one-off basis. Let me be the first to tell you that we have proactively used data to generate FCPA cases, and we’ve only just gotten started.”

Anselmo Guevara, manager at VMware, has emphasized the need for companies to have a compliance program that provides visibility into their data at their fingertips. It is no longer sufficient to simply collect data and have someone review and reconcile it. Compliance professionals must actively analyze the data for trends, anomalies, and potential compliance risks. This proactive approach allows companies to identify and address compliance issues before they escalate.

But as with all new initiatives in compliance, one must emphasize the importance of starting a compliance journey with a formal risk assessment. Guevara suggested collaborating with various departments within the organization, such as accounts payable, receivables, internal audit, and business operations, to understand the risks associated with different processes. This collaborative effort helps identify compliance controls that need to be in place and ensures that the data required for analysis is available.

While low-hanging fruit may seem like an attractive starting point, Guevara cautioned against solely focusing on easy wins. He advised against presenting a weak business case to secure budget approval for compliance projects. Instead, he recommended conducting a comprehensive compliance risk assessment to prioritize areas that require immediate attention. This approach ensures that compliance efforts are aligned with your organization’s overall risk management strategy.

Data analytics play a crucial role in enhancing compliance efforts. By leveraging data analytics tools and techniques, compliance professionals can identify patterns, detect anomalies, and uncover potential compliance risks. However, Guevara highlighted the importance of validating suspicious transactions before raising concerns. It is essential to conduct due diligence and thoroughly investigate any potential issues to maintain financial integrity and credibility.

Data-driven compliance programs have moved from cutting edge and are now seen as best practices. Soon, they will simply be table stakes for companies to effectively manage compliance risks. By actively monitoring and analyzing data, companies can identify potential compliance issues, mitigate risks, and maintain their reputation and integrity. Collaboration between different departments and a formal risk assessment are key factors in establishing a robust compliance program. As technology continues to advance, the role of data analytics and AI in compliance monitoring is expected to become even more significant. It is crucial for compliance professionals to stay informed, continuously learn, and adapt to the evolving landscape of data-driven compliance.